Bonds in Turmoil

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Steve and Clem examine how bonds have shifted from reliable safe havens to potentially risky investments in today's economic landscape, challenging conventional wisdom about treasuries as risk-free assets.

• Bonds traditionally provided safety and income, but inflation and economic uncertainty have changed this dynamic
• Bond vigilantes reacting to tariff announcements revealed hidden vulnerabilities in bond portfolios
• Long-duration treasuries (20-30 years) make little sense for individual investors despite their institutional utility
• Corporate bonds from companies with strong balance sheets may offer better safety than government treasuries
• Municipal bonds provide tax advantages and allow investors to leverage local knowledge
• Current inflation concerns suggest shorter bond durations (2-3 years vs. market average of 6 years)
• "All that is riskless is not US Treasuries" – questioning the fundamental assumption of risk-free government debt
• Rising rates can significantly impact bond values through duration risk (5-year duration means ~5% loss per 1% rate increase)

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Disclaimer - These podcasts are not intended as investment advice. Individuals please consult your own investment, tax and legal advisors. They provide these insights for educational purposes only.